Phoebe Venable: Will isn’t just for the wealthy

A properly executed will ensures you can give what you have to whom you want, when you want, the way you want.
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Do you have a will? If not, you are not alone.

Many people do not have a “last will and testament” — as the document is often called, owing to the fact once upon a time in English law, wills pertained to real property while testaments referred to personal property. Many people mistakenly believe only wealthy people need to have a will. Others simply don’t want to think about dying or divvying up their belongingsStill others just procrastinate, putting off the task year after year, thinking they have plenty of time to do it later.

People of all levels of wealth can benefit from an overall estate plan, and a will is the first and most practical step in estate planning. A properly executed will ensures you can give what you have to whom you want, when you want, the way you want. It’s your plan for distributing your things after your death. If you don’t document this in a written will, according to Tennessee law you’ve opted out of your own plan. Instead, you get the state’s plan.

When you die without a will, this is known as “dying intestate.” The laws of intestacy set forth how your estate will be divided if you do not have a will when you die. Here is the state’s plan for all those people who, for whatever reason, die without a will:

» Surviving spouse receives 100 percent if there are no surviving children.

» If there are children and a surviving spouse, the spouse receives either one-third or a child’s share of the entire estate, whichever is greater. More simply stated, the smallest portion that will pass to the surviving spouse is one-third, and the other two-thirds would be split equally among the children. If there is only one child, the surviving spouse and the child each receive half.

» If there is no surviving spouse, the assets are divided among the children and/or grandchildren. If the survivors are all of the same degree of kinship (all children or all grandchildren) to the decedent (the legal word for someone who has died), they receive equal shares. If some are children and some are grandchildren, the distribution is based upon representation, meaning the grandchildren only receive what their parent would have received.

If there is no surviving spouse or children, the assets pass on based upon family relationships in the following order:

• the decedent’s parents

• brothers and sisters of the decedent, including the children of any deceased brothers and sisters

• decedent’s grandparents

• other relatives

If there are no surviving relatives, the estate goes to the state of Tennessee.

The state’s plan attempts to distribute the assets to the closest and most immediate family members of the decedent, and this plan may work for some people. But the state hasn’t a clue which individuals or entities you deem most deserving of your belongings. Which means the state’s plan probably is not the best for most of us.

Phoebe Venable, chartered financial analyst, is president and COO of CapWealth Advisors LLC. Her column on women, families and building wealth appears each Saturday in The Tennessean.

Write your own will

Beginning with a will, a good estate plan can give you peace of mind. Many websites offer templates and guides for writing your own will. While this might be better than no will at all, it is best to get legal advice and assistance. An attorney will ensure your wishes are clearly stated. If you have already completed a will, it is a good idea to review it from time to time to ensure it continues to reflect your wishes.